Chinese hotel operator Atour stock climbs 17% following downsized $52M IPO (update)
2d illustrations and photos
Chinese hotel operator Atour Lifestyle Holdings (NASDAQ:ATAT) American Depositary Shares jumped 17% following a $52M US initial public offering that priced at the lower end of the company's previously announced range.
Atour ADSs opened at $15.50 after pricing at $11, reaching a high of $17.05 before sliding to a low of $12 in late morning trading. The stock closed at $12.88.
The Chinese company priced 4.75M ADSs at $11 per ADS, raising just over $52M. Each ADS represents three ordinary shares. Underwriters were granted a 30-day option to buy up to 713K additional ADSs.
The ADSs priced at the lower of end the company's previously proposed range. In a Nov. 7 filing, Atour said it was planning to offer 4.75M ADSs priced between $11 and $13, which would have raised around $57M if priced at the midpoint.
Based in Shanghai, Atour operates 834 hotels in 151 cities across China.
The IPO deal was significantly smaller than the one originally proposed by the company last year. In June 2021, Atour said it was looking to offer 19.7M ADSs priced between $13.50 and $15.50, which would have raised around $286M if priced at the midpoint.